Dunedin Ent.it. Regulatory News (DNE)

Dunedin Enterprise Investment Trust PLC

LEI: 213800E2VLUZ5AF9Z434

6 May 2020

Quarterly Update

1. Unaudited net asset value per share

The unaudited net asset value per share at 31 March 2020 was 379.9p. This represents a total return per share of -14.5% during the quarter when compared to the net asset value per share of 444.4p as at 31 December 2019.

2. Share price

The share price has decreased by from 376p to 252p in the quarter to 31 March 2020. The share price total return for the quarter to 31 March 2020 was -33.0%. This compares to a decrease in the FTSE Small Cap Index of 32.7% over the same period. The discount to net asset value at 31 March 2020 was 33.7%. 

3. Balance Sheet

The unaudited balance sheet as at 31 March 2020 is noted below: -

4. Net asset value movements

The portfolio of investments has been re-valued at 31 March 2020. The decrease in net asset value in the quarter can be attributed to valuation decreases at FRA (£2.6m), Formaplex (£2.5m), EV (£2.4m), Red (£2.2m), Hawksford (£1.7m), U-POL (£1.3m) and Weldex (£1.1m) reflecting the potential impact of COVID-19 on the valuation of each of these portfolio companies.

5. Cash and Commitments

Dunedin Enterprise had cash and near cash balances of £12.3m at 31 March 2020. Following the quarter end a distribution of £13.8m was received from Dunedin Buyout Fund III LP representing the proceeds from the sale of Kingsbridge which completed in April 2020 and a recapitalisation of FRA in February 2020. Following this receipt total cash and near cash balances were £26.1m.

Outstanding capital commitments to limited partnership funds are £22.2m. It is expected that £12.2m of the total outstanding commitments will ultimately be drawn over the remaining life of the funds.

We are currently negotiating an extension of the £5m banking facility with Lloyds Bank for a further year to 31 May 2021. In due course we will be advising shareholders of a further return of capital.

6. Dividend

If approved by shareholders at the Annual General Meeting on 6 May 2020 a final dividend of 5.0p per share will be paid to shareholders on 15 May 2020.

7. Outlook

The global economy is suffering significant disruption due to the restrictions imposed to combat the Coronavirus, presenting substantial challenges for each portfolio company. Your Manager has representation on the Board of each company; regular contact is being maintained to understand the impact on their trading and financial stability. Each company has developed a contingency plan which will continue to evolve as the impact of the Coronavirus becomes clearer.

For further information on Dunedin Enterprise please go to www.dunedinenterprise.com.

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